Bio-Technology General Corp. Signs Exclusive Agreement for Its Proprietary Osteoarthritis Agent, BioHy, With Depuy.

Business Editors

ISELIN, N.J.--(BUSINESS WIRE)--June 26, 2000

Bio-Technology General Corp. (NASDAQ:BTGC) today announced that it has entered into an exclusive agreement with DePuy Orthopaedics Inc. ("DePuy"), a Johnson & Johnson Company (NYSE:JNJ), for BioHy(TM), BTG's proprietary high molecular weight sodium hyaluronate product, for the treatment of pain

associated with osteoarthritis of the knee.

DePuy, one of the world's leading orthopedic companies, focuses on products for total hip and extremity implants, and total knee implants, as well as on surgical equipment and environmental protection products.

The agreement grants DePuy exclusive marketing rights to BioHy in all countries worldwide except Japan and Israel. Clinical efforts, where required, and applications for regulatory approvals will be undertaken by DePuy in the licensed territory except in Europe, where BTG is currently conducting a Phase III safety and efficacy study of the product. The randomized, double-blind study is comparing BioHy with Synvisc(R), a well accepted commercial product in the European viscoelastic market for osteoarthritis of the knee. Completion of the study, to be followed by a regulatory submission for approval to market BioHy in Europe, is anticipated this year.

Sim Fass, Chairman and CEO of Bio-Technology General Corp., stated: "We are extremely pleased to have forged this important relationship with such a strong leader worldwide in the orthopedics arena. We believe that because of the alliance with DePuy, BioHy will be well positioned to make a significant impact on the market for viscoelastic products for osteoarthritis."

Injections of sodium hyaluronate into the knee have been shown to reduce pain associated with osteoarthritis of the knee by augmenting elastoviscosity within the joint. The current worldwide market for viscoelastic products for osteoarthritis of the knee is approximately $400 million, and is expected to grow as the aging population increases.

Bio-Technology General Corp., a leading biopharmaceutical company, develops, manufactures and markets genetically engineered and other products for human health care. The Company's products are marketed in over thirty countries worldwide.

Statements in this news release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under the Federal Securities Laws. Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to, changes and delays in product development plans and schedules, customer acceptance of new products, changes in pricing or other actions by competitors, patents owned by the Company and its competitors, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.